K Controls – Debt Referral (MSP and Non-MSP)

50.11 – K Controls – Debt Referral (MSP and Non-MSP) (Rev. 11133, Issued:11-30-21, Effective: 10-01-21, Implementation: 12-31-21) K – Control Number Control Objective – Debt Referral (MSP and Non-MSP) K.1 Procedures are documented and followed to identify a debt eligible for referral to Treasury for cross servicing and Treasury Offset Program (TOP) prior to the debt becoming 120 days delinquent. These procedures are written and available for review. Debts eligible for referral and debts ineligible for referral are properly reported on the appropriate CMS Forms 751, Contractor Financial Reports, Status of Accounts Receivable, or the Treasury Report on Receivables and Debt Collection Activities Report. For MSP debt, see Internet Only Manual (IOM), Pub 100-05, MSP Manual, Chapter 7, Section 60 and Chapter 4, Debt Collections. K.2 Intent to Refer Letters (ITRs) for eligible debt are sent in a timely manner in accordance with CMS instructions. Timeframes for each type of debt can be found in the IOM, Chapter 4, Debt Collections. K.3 Responses to the ITR letter are handled timely according to CMS instructions. Appropriate systems are updated to reflect any changes to the eligibility status of the debt and these statuses are properly reported on the financial reporting forms outlined in K.1. Procedures are in place to handle undeliverable letters. Refer to the IOM, Chapter 4, Debt Collections. K.4 All contractors review the system generated HIGLAS CMS Debt Management (CMSDM) Return to Agency (RTA) report and update HIGLAS accordingly to ensure appropriate debts are referred to Treasury as follows: • CMS contractors who have not transitioned to HIGLAS, including the Administrative Program Accounting (APA) line of business, ensure that the HIGLAS Debt Management Module is updated timely for debt referrals as needed. • HIGLAS contractors ensure that the HIGLAS AR transactions are updated timely for debt referrals as needed. K.5 When there is a change to a debt that has been referred for cross servicing, CMS contractors who have not transitioned to HIGLAS, including the APA line of business, update the HIGLAS Debt Management Module to initiate recalls, collections, and adjustments timely and accurately in accordance with CMS instructions. HIGLAS contractors initiate recalls, collections and adjustments timely and accurately by updating the HIGLAS Accounts Receivable (AR) transactions as needed. K – Control Number Control Objective – Debt Referral (MSP and Non-MSP) K.6 All CMS contractors ensure that the CMSDM Treasury Collection Report Spreadsheets are completed timely in accordance with CMS instructions, and the appropriate source systems are updated as follows: • CMS contractors who have not transitioned to HIGLAS, including the APA line of business, ensure that the HIGLAS Debt Management Module is updated timely with refund/adjustment information as needed. • HIGLAS contractors, including the APA line of business, ensure that the HIGLAS AR transactions are updated timely and accurately with the refund/adjustment information as needed. K.7 Treasury Cross-Servicing Dispute Resolution forms are researched, resolved, and responded to Treasury timely in accordance with CMS instructions. Procedures are in place and are being followed to respond to these disputes/inquiries, update the appropriate system, and properly report the status and balance of the debt in the financial reporting forms. K.8 All CMS contractors ensure that the CMSDM RTA report spreadsheets are completed timely in accordance with CMS instructions and debts listed on the spreadsheet are properly reported on the financial reporting forms in accordance with CMS instructions. CMS contractors who have not transitioned to HIGLAS, including the APA line of business, follow the RTA Interface and Report instructions in the HIGLAS Debt Management Module training guide. K.9 Contractors ensure that debts have the correct status when the debt is referred to Treasury and retains this correct status while at Treasury. End Section 50.11 – K Controls – Debt Referral (MSP and Non-MSP): Back to Table of Contents